Developing a Kitchen Remodel Budget

When I started my career as a designer, it was at a small, independent kitchen design firm. I had no idea what the average kitchen cost to remodel. As a recent college graduate, I was lucky enough to just plan and draw spaces- no budget! $20,000? $40,000? That amazing huge kitchen I just drew- was that $60,000? Because if we do online searches, they all say the average kitchen is $20-40,000, so expecting $20,000 for a low-budget kitchen remodel is reasonable, right? If you’re going the DIY route, sure. But, to select a budget that is complementary to your home, you will want to use the steps below.

Use the value of your home to develop a realistic budget
Kitchen remodels will and should cost between 5-15% of the value of your home. That is, according to all the publications. But, I’ll be honest with you. If you come to me with an $800,000 home and plan to put $40,000 into a full gut and remodel of your kitchen, I will tell you that you are taking value away from your home. Then again, it entirely depends on the extent of the design.
So, when I say that the cost of your project should be between 5-15% of the value of your home, we are talking about the starting point where aesthetics are the project. Painting existing cabinets, replacing counters, but not moving any plumbing or electrical and keeping all existing walls. If you want to knock down walls, change the layout, move your sink, and get all new appliances, be prepared to dish out at least 10% of your home’s value.
Now, let’s talk for a minute about each extreme. If you are working on upgrading for less than 5%, take a break and come back when you do have at least that 5%, or you are likely devaluing your home. On the flip side, you can certainly spend 30% of the value of your home on a gut and remodel, but know that this is out of love for your home and your space. It will not come back to you in the sale of your home.
An example home of $800,000 worth in the 8% bracket would suggest a $64,000 budget for the kitchen remodel.

Where should the money go?
This part never fails to amaze me, and it is different every time depending on the homeowner’s priorities, needs, and the function of the kitchen. The NKBA (National Kitchen and Bath Association) has developed some general standards, however, to give us an idea of the weight of each aspect of a kitchen remodel. Using the example of a $64,000 remodel, a budget may be expected to break down a bit like this: Cabinetry- 48% ($30,720), Counters- 18% ($11,520), Appliances- 15% ($9,600), Fixtures- 6% ($3,840), Electrical- 5% ($3,200), Flooring- 5% ($3,200), Walls and Trim- 3% ($1,920)

Now, we have to keep in mind that there will be different levels of labor, depending on your project. There will likely be permits and permit fees as well. No matter how well trained or how much experience your contractor or designer have, we sadly do not have x-ray vision and cannot predict what will be found in the construction process. So while this is a good rule of thumb, always leave some cushion in your budget and be prepared for these “surprises”.
Product vs. Labor
The prices above include both product and labor. The NKBA has again, given us some standards to consider for this breakdown to be used as a rule of thumb:
Below see a breakdown based on an $800,000 home:

Additional costs to consider:
o    Demolition
o    Back splash
o    Connecting spaces that may need work as a result of this work
o    Permits
Interior Design Fee
This generally runs 5-10% of the project cost, but varies based on designer experience. Keep in mind that a kitchen design firm will often provide “free” design services when you purchase cabinetry. These services are not truly free- they are hidden in the cost of the cabinetry. A full-service designer will charge a fee to design your kitchen, but you will likely get product at a lower cost. Each type of designer has its pros and cons, but that is a discussion for another time!

To learn about Rachel Waldron’s interior design services, contact her at 206.249.9860 or rachel@waldrondesigns.com